Nasdaq Files to Expand Crypto ETF Options for BTC, ETH, SOL, and XRP

Key Insights:

• Nasdaq proposes standardized rules for options tied to qualifying Crypto ETF options.
• The framework allows up to 15% of trust holdings outside derivatives markets.
• Each digital commodity must meet a $700 million market value threshold.

Nasdaq has filed a proposed rule change with the Securities and Exchange Commission to expand how options tied to Crypto ETF products could reach the market. The proposal would establish standardized criteria for listing options on commodity-based trusts holding digital commodities.

It could cover assets such as Bitcoin, Ether, Solana, and XRP if they meet the stated requirements. The filing also introduces a 15% allowance for digital commodities that do not satisfy the derivatives-market requirement.

The proposal comes as Nasdaq continues changing its rules for digital-asset derivatives. Its latest filing would replace the term “crypto asset” with “digital commodity” and establish specific conditions for qualifying trusts. The changes would also reduce the need for a separate SEC approval process for every qualifying product.

Nasdaq Sets Rules for Crypto ETF Options

Nasdaq ISE submitted the proposal under File Number SR-ISE-2026-42. The filing requires at least 85% of a trust’s net asset value to consist of holdings that underlie derivatives contracts. Those contracts must trade on markets with comprehensive surveillance-sharing agreements.

The requirement can be satisfied through an agreement with the exchange or through the Intermarket Surveillance Group. Nasdaq would also allow up to 15% of a trust’s NAV to contain digital commodities that do not meet the derivatives-market requirement.

However, the filing keeps a separate liquidity requirement for every underlying holding. Each digital commodity must have an average daily global market value of at least $700 million over the previous 12 months.

The proposed terminology also follows Nasdaq Rule 5711(d). Under that definition, a digital commodity derives value from the programmatic operation of a functional crypto system and supply-and-demand dynamics.

SEC Review Will Determine Next Steps

The SEC will open a 21-day public comment period after the proposal appears in the Federal Register. The Commission can then take action within 45 days or extend the review period for up to 90 days.

If approved, Nasdaq could list options on qualifying commodity-based trusts without submitting a separate rule filing for each product. The request sets out eligibility conditions that trusts must meet before their options can be listed.

The filing follows an earlier Nasdaq ISE rule change approved by the SEC in March 2026. That decision allowed options on Commodity-Based Trusts that hold multiple digital assets rather than only one.

A related exchange filing also introduced the 15% buffer and digital-commodity definition. Nasdaq’s latest proposal builds those provisions into its framework for options on qualifying trusts.

Nasdaq Expands Earlier Crypto ETF Options Changes

Nasdaq previously sought to remove position limits on options linked to spot Bitcoin and Ether ETFs. The proposal, filed January 7, sought to eliminate the existing 25,000-contract limits for options tied to several Bitcoin and Ether funds.

The SEC waived the standard 30-day waiting period for that change while retaining authority to suspend it within 60 days. Nasdaq said the measure would treat qualifying digital-asset options similarly to other eligible options.

The exchange had also sought to raise the position limit for options tied to BlackRock’s iShares Bitcoin Trust from 250,000 contracts to 1 million. That filing cited demand for additional capacity for hedging and trading strategies.

The latest proposal places greater emphasis on standardized eligibility, market surveillance, and liquidity thresholds. The SEC’s review will determine whether Nasdaq can proceed with the proposed framework.

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